Derivative Liabilities

12 Months Ended

Mar. 31, 2015

Derivative Liabilities [Abstract]

Derivative Liabilities

7. Derivative Liabilities

The Company records the fair value of the of the conversion price of the convertible debentures disclosed in Note 6 in accordance with ASC 815, Derivatives and Hedging. The fair value of the derivative was calculated using a binomial option pricing model. The fair value of the derivative liability is revalued on each balance sheet date with corresponding gains and losses recorded in the consolidated statement of operations. During the year ended March 31, 2015, the Company recorded a loss on the change in fair value of derivative liability of $349,704 (2014 - $nil). As at March 31, 2015, the Company recorded a derivative liability of $393,419 (2014 - $nil).

The following inputs and assumptions were used to value the convertible debentures outstanding during the year ended March 31, 2015:

	May 27, 2014  Convertible Debenture						June 12, 2014  Convertible Debenture
	As at  March 31, 2015			As at November 27, 2014			As at  March 31, 2015			As at December 12, 2014
Estimated common stock issuable upon conversion		438,135			286,606			202,020			173,195
Estimated exercise price		0.50			0.73			0.50			0.61
Risk-free interest rate		3	%		7	%		3	%		9	%
Expected dividend yield		–			–			–			–
Expected volatility		195	%		179	%		189	%		179	%
Expected life (in years)		0.16			0.5			0.20			0.5

A summary of the activity of the derivative liability is shown below:

	$
Balance, March 31, 2014		–
Debt discount due to derivative		43,715
Mark to market adjustment as at March 31, 2015		349,704
Balance, March 31, 2015		393,419